Vivo Energy invests $130m to expand Durban fuel storage
The company is adding around 125,000 cubic meters of storage capacity in the South African port city.
Vivo Energy, a subsidiary of global energy trader Vitol, is investing approximately $130 million to expand fuel storage capacity in Durban, South Africa, as the country looks to strengthen its resilience against Middle East supply disruptions, reports Reuters.
The company is adding around 125,000 cubic meters of storage capacity in the port city, which will bring its total storage footprint in the area to 500,000 cubic meters, according to George Roberts, chief executive of Vivo Energy's local unit Engen. The expanded capacity is expected to come online in phases between the third quarter of 2026 and Q3 2027.
"This will allow you to increase the stock levels in-country and therefore if something like this happens again, it gives us more time to go and find product elsewhere," Roberts told Reuters, noting that shipping product to South Africa takes an average of 20 to 25 days depending on origin.
The additional capacity will come from converting former refinery tanks in Durban and upgrading a receiving facility at Island View, as part of Vivo Energy's broader effort to repurpose the fire-damaged Engen refinery as a multi-product storage terminal handling diesel, petrol and jet fuel.
Southern and East African nations, including South Africa, a net importer of crude and refined petroleum products, are considered particularly vulnerable to Middle East supply disruptions due to limited infrastructure and storage capacity.
Vivo Energy, which operates more than 4,000 service stations across Africa under the Shell and Engen brands, is also investing in LPG and refined petroleum storage facilities in Ivory Coast, Senegal and Morocco.
